Benson and Orton are partners who share income in the ratio of 1:3 and have capital balances of $… 1 answer below »

Benson and Orton are partners who share income in the ratio of 1:3 and have capital balances of $70,000 and $30,000 respectively. Ramsey is admitted to the partnership and is given a 40% interest by investing $20,000. What is Orton’s capital balance after admitting Ramsey? a. $70,000 b. $20,000 c. $63,000 d. $9,000

Singer and McMann are partners in a business. Singer’s original capital was $40,000 and McMann’s was $60,000. They agree to salaries of $12,000 and $18,000 for Singer and McMann respectively and 10% interest on original capital. If they agree to share remaining profits and losses on a 3:2 ratio, what will Singer’s share of the income (loss) be if the net loss for the year was $10,000? a. ($6,000) b. ($14,000) c. ($12,600) d. ($10,000)

 

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